CBSE 12th Board Exams 2024: Economics syllabus has 8 units; marking scheme

Unit-name

Chapters and Topics

Unit 1: National Income and Related Aggregates

• What is Macroeconomics? Basic concepts in macroeconomics: consumption goods, capital goods, final goods, intermediate goods; stocks and flows; gross investment and depreciation.

• Circular flow of income (two sector model); Methods of calculating National Income – Value Added or Product method, Expenditure method, Income method.

• Aggregates related to National Income: Gross National Product (GNP), Net National Product (NNP), Gross Domestic Product (GDP) and Net Domestic Product (NDP) – at market price, at factor cost; Real and Nominal GDP.

• GDP and Welfare

Unit 2: Money and Banking

• Money – meaning and functions, supply of money – Currency held by the public and net demand deposits held by commercial banks.

• Money creation by the commercial banking system.

• Central bank and its functions (example of the Reserve Bank of India): Bank of issue, Govt. Bank, Banker’s Bank, Control of Credit through Bank Rate, CRR, SLR, Repo Rate and Reverse Repo Rate, Open Market Operations, Margin requirement.

Unit 3: Determination of Income and Employment

• Aggregate demand and its components.

• Propensity to consume and propensity to save (average and marginal).

• Short-run equilibrium output; investment multiplier and its mechanism.

• Meaning of full employment and involuntary unemployment.

• Problems of excess demand and deficient demand; measures to correct them – changes in government spending, taxes and money supply.

Unit 4: Government Budget and the Economy

• Government budget – meaning, objectives and components.

• Classification of receipts – revenue receipts and capital receipts; Classification of expenditure – revenue expenditure and capital expenditure.

• Balanced, Surplus and Deficit Budget – measures of government deficit.

Unit 5: Balance of Payments

• Balance of payments account – meaning and components; Balance of payments – Surplus and Deficit Foreign exchange rate – meaning of fixed and flexible rates and managed floating. Determination of exchange rate in a free market, Merits and demerits of flexible and fixed exchange rate. Managed Floating exchange rate system

Unit name

Chapters and Topics

Unit 6 – Development Experience (1947-90) and Economic Reforms since 1991

• A brief introduction of the state of Indian economy on the eve of independence. Indian economic system and common goals of Five Year Plans.

• Main features, problems and policies of agriculture (institutional aspects and new agricultural strategy), industry (IPR 1956; SSI – role & importance) and foreign trade.

• Economic Reforms since 1991: Features and appraisals of liberalisation, globalisation and privatisation (LPG policy); Concepts of demonetization and GST

Unit 7 – Current challenges facing Indian Economy

• Human Capital Formation: How people become resource; Role of human capital in economic development; Growth of Education Sector in India.

• Rural development: Key issues – credit and marketing – role of cooperatives; agricultural diversification; alternative farming – organic farming.

• Employment: Growth and changes in work force participation rate in formal and informal sectors; problems and policies.

• Sustainable Economic Development: Meaning, Effects of Economic Development on Resources and Environment, including global warming.

Unit 8: Development Experience of India

• A comparison with neighbours India and Pakistan, India and China.

• Issues: economic growth, population, sectoral development and other Human Development Indicators.